TAIEX jumps 3 percent on back of Quanta gains

Stocks rose yesterday, sending the TAIEX to its biggest gain in a month. Computer-related stocks such as Quanta Computer Inc (廣達電腦) gained after Citigroup Inc's Smith Barney unit raised its rating and forecasts for Intel Corp.

The TAIEX gained 145.63, or 3 percent, to 5,017.78, its biggest gain since June 2. Only 48 of the 616 stocks traded on the Taiwan Stock Exchange Corp (證交所) declined. July futures on the index rose 3.1 percent to 5,038.

About 4.9 billion shares changed hands, 50 percent above the average daily volume in the past three months. The value of trading was NT$106.9 billion (US$3 billion), 60 percent above the average daily value traded in the last three months.

"Lowering interest rates will help ease trading costs for investors," said Simon Chao (趙永宏), who manages US$17 million at President Investment Trust Corp (統一投信). "More importantly, the rate cut boosted investor confidence in the market."

Fuh-Hwa Financial lowered its interest rate to 6.65 percent from 6.95 percent yesterday. The central bank last Thursday cut its benchmark interest rate by a quarter of a percentage point, matching a move by the US Federal Reserve.